In addition to the serious health effects and expected deaths from the global coronavirus pandemic, in the coming months the world will face an economic crisis stemming from its effects on international health systems and social distancing measures.

To mitigate the negative impact of an economic slowdown on social welfare, it is necessary for governments to start planning and implementing financial support policies that allow families and companies to solve a significant decrease in their income.

In Mexico, it is highly likely that the available fiscal resources are limited, so it is necessary to use them strategically. The first sectors of the economy to be affected by social distancing measures will be services such as hotels, restaurants, tourism and other recreational services.

Their income depends on consumption in establishments, the arrival of tourists and social gatherings. By offering support programs and tax incentives to these sectors, it is possible to stop the chain effect towards their employees, suppliers and banks. In addition, it is important that some support programs are specifically targeted at workers in the service sector.

What are the states with the highest risk due to their dependence on tourism?

At the national level, tourism and recreational services represent approximately 3% of GDP, but in some states they are key to the local economy. In this scenario, the most vulnerable states are those in which tourism and recreational activities represent more than 10% of the state’s gross domestic product (GDP).

The states most dependent on tourism and recreational services are Quintana Roo, where these activities represent 25% of its GDP, Baja California Sur (14%), Nayarit (13%), Guerrero (7%) and Oaxaca (4%).

Given the expectation of low dynamism in the most important economic sectors of their states, some governors have announced the implementation of mitigation measures:

  • Quintana Roo: Have proposed tax incentives to avoid the dismissal of workers, deferral of tax payments and extensions of the payment of subsidies.
  • Baja California Sur: the announcement of tax benefits was accompanied by a proposal to postpone the payment of the payroll tax and vehicle review, as well as the suspension of control acts.
  • Oaxaca highlighted an investment of 180 million pesos for the local economy and a fiscal stimulus of 100% to the tax on lodging services.

Other states, tourist and non-tourist, must advance local agendas of economic support to the service sector. It is necessary to implement measures similar to those carried out by these entities to those of these states throughout the Republic. The federal resource distribution strategy to lessen the economic recession at the local level must give priority and focus support resources towards tourist states, in addition to locating related sectors for a second stage of economic measures.

IMCO proposes

  • Implement timely measures to protect the income of families and companies in the service sector.
  • Prioritize and focus federal resources to support tourism states.
  • Find related sectors for a second stage of economic measures.
  • Consider discounts on the payment of lodging taxes and payroll taxes, especially for micro, small and medium-sized companies.
  • Generate a tourism economic reactivation plan after the contingency generated by COVID-19.



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